In Delaware, the threshold is $100,000 for new construction and $15,000 for repairs or additions, meaning all projects exceeding the relevant sum require that the government pay out prevailing wages.

The pay rate can exceed the normal wage for laborers, although in other instances there’s little difference. A bricklayer doing building construction earns $49.39 an hour statewide — but for heavy projects, defined as virtually anything that isn’t a building or street, workers in New Castle County and workers in lower Delaware make very different salaries.

In New Castle, the set rate of pay for a brickmason is $44.98 per hour, whereas in Kent it’s $22.19 and in Sussex it’s $23.83. The Bureau of Labor Statistics reported the 2012 median hourly wage for the occupation was $21.61 nationally.

Prevailing wage laws have existed in Delaware since 1992. Thirty-two states and the federal government have regulations governing pay on government-funded work.

For Delaware, the rate for workers is set by the Department of Labor based on “the same rates established in collective bargaining agreements between labor organizations and their employers that govern work of a similar nature and similar crafts or classes of laborers and mechanics for the county where the public works contract will be performed if that particular labor organization’s collective bargaining rate prevailed and they participated in the survey, for that particular trade or craft in that particular county for two consecutive years.”

In 2013, prevailing wage was cited as the reason why a $100,000 sum raised by the nonprofit group associated with the Rockwood Museum in Wilmington was declined. County Executive Tom Gordon and New Castle County Council opted to refuse the donation, arguing the work would cost more than $100,000 and thus require the state pay the prevailing wage.

Prevailing wage laws not only ensure workers receive higher salaries, they can also lead to more consistent bids, say its proponents. With a typically high set minimum salary rate for employees, contractor bids are subject to less variation.

While prevailing wage does increase the spending needed for state projects, Democrats argue that the benefits to workers are worth it.

On the other hand, Delaware Republicans claim the expenses cost taxpayers, increasing costs by between 20 percent and 35 percent. With a higher level, fewer projects would qualify, meaning total wage payments would be lower.

The state would then get a “bigger bang” for its dollars, Minority Leader Rep. Daniel Short, R-Seaford, said.
House Bill 145, which would raise the rates, is the product of months of negotiations between lawmakers. It was introduced this month in an effort to gain support for Division of Motor Vehicles fee hikes.

But not a single Republican signed on to support the bill, and leadership has protested its introduction.

The current level of $15,000 is “meaningless” and the proposed amount is not much better, Minority Whip Sen. Gregory Lavelle, R-Sharpley, said.

Republican leadership has proposed a bill that would raise the construction amount to $500,000, the same level as in the Democratic-backed bill, but also would increase the renovation level to $250,000.

Set to be introduced soon, the bill has been circulated. Like House Bill 145, the draft bill has divided the caucuses, receiving support only from the minority.

Speaker of the House Peter Schwartzkopf, D-Rehoboth Beach, said the Democrats had agreed to discuss changing prevailing wage in exchange for support for higher DMV fees, which would be used to fund infrastructure projects.

Negotiations between lawmakers of both parties, as well as unions, brought the sides close to a deal on occasion before things fell through, Rep. Schwartzkopf said. He put the blame on Republican leadership, although Rep. Short said Democrats were unwilling to make major changes.

Currently, the renovation level has become a sticking point — and it’s holding up a potential $24 million that would go to infrastructure.

With no Republican support, the DMV bill passed the House by the thinnest of margins.

Were it 2014, the lack of minority support would be just a minor problem for the Democrats. But now, with the Democratic Senate caucus no longer possessing the 60 percent super majority needed to pass fee bills, Republican approval is necessary.

Sen. Lavelle believes leadership intends to stand firm.

“It’s not going to fly if I have anything to do with it,” he said of the DMV bill.

But Rep. Schwartzkopf said Thursday he is optimistic. The two sides are set to meet this week and continue the negotiations that previously had broken down.

Rep. Schwartzkopf said he’s spoken to some Republican legislators who support the intent of the DMV bill; he believes rank-and-file members are starting to put pressure on leadership to sign on to the deal.

Another facet of the Democratic-backed bill would change the method by which the prevailing wage rate is adjusted.

A survey is supposed to help set the rate, but according to Rep. Schwartzkopf, many businesses do not fill it out, which can skew the reported data.

House Bill 145 would develop a committee that would study possible improvements to prevailing wage, with the goal of developing a report by Jan. 20.

Although Republicans have argued the majority caucuses are refusing to compromise, Rep. Schwartzkopf noted the new renovation total proposed by Democrats is three times the current one, while the Republican idea would increase it nearly 17-fold.

Still, Republicans offer words of caution. They envision projects costing less due to lower labor expenses — which would lead to more construction and improvements, some sorely needed, lawmakers say.

“It could save a heck of a lot of money,” Sen. Lavelle said.

For now, both sides have dug in their heels, but it’s getting late. Only 13 legislative days are left, and prevailing wage is not the only major issue confronting the General Assembly.

Changes are all but certain — it’s just what exactly the renovations level would become that’s holding up lawmakers.

“If we can’t get Republicans to come across and help us on that, Lord help us on the budget,” Rep. Schwartzkopf said.

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